Nu Skin Enterprises Inc. (NUS) delivered a rough earnings report Thursday after the close, and investors aren't sticking around to see how the turnaround story plays out. The beauty and wellness company missed on both the top and bottom lines for Q4 2025, then offered guidance for 2026 that suggests things might get worse before they get better.
The numbers tell a challenging story. Nu Skin reported GAAP diluted earnings of 29 cents per share, just shy of the 30-cent estimate, while revenue came in at $370.32 million versus expectations of $382.70 million. That revenue figure represents a 16.9% decline from the $445.55 million the company generated in the same quarter a year ago. Adjusted earnings of 29 cents per share also fell short of last year's 38 cents.
There were some bright spots if you squint. Gross margin jumped to 70.7% from 62.7%, and operating margin swung positive to 6.3% from a negative 11.9% the prior year. So the company is getting more efficient, even as the business shrinks.
The shrinking part is harder to ignore. The customer base totaled 748,796, down 10% from a year ago. Paid affiliates numbered 129,311, an 11% decrease, while sales leaders fell 19% to 30,045. Those are the kinds of declines that make you wonder about momentum.
Management is betting big on the Prysm iO device to change the trajectory. The company says more than 20,000 of these devices are already with sales leaders, generating over 700,000 scans. Nu Skin is also preparing to enter India, with a full market launch expected in the second half of the year.
By segment, Nu Skin revenue declined to $321.80 million from $362.45 million, while Rhyz revenue dropped sharply to $48.52 million from $83.10 million.
The balance sheet shows $238.63 million in cash and cash equivalents against total debt of $224.19 million, with $20.0 million due within a year.
CEO Ryan Napierski struck an optimistic tone despite the results: "This past year was a pivotal year as we furthered our transformation toward becoming the world's leading intelligent beauty and wellness platform and laid the groundwork for our 2026 growth initiatives."
He added, "Looking ahead, we continue to build sales leader alignment in the first half of the year around the global launch of Prysm iO, positioning us for a return to year-over-year revenue growth by year's end."
